Income Tax Refund Estimator

| January 3, 2012

Every year many people dread the feared income tax preparation, but there can be a good outcome and a large refund can be received. Using an income tax refund estimator is an excellent tool to use, to calculate an estimated refund that will be received; this will give the filer a heads up on whether they may owe the government or receive a refund.

Income Tax Refund Estimator

A refund calculator or estimator will ask certain questions like; what is your filing status, single, married, head of household etc. It will also ask your age, number of dependents, and total wages for that tax year, federal income tax withheld, and state taxes. It will also ask about mortgage payments, any charitable donations, job expenses, student loans interest, post-secondary tuition, child care expenses and any other miscellaneous expenses. After all of this information is entered the estimator will calculate your refund.

This calculator is just an estimate the actual numbers and status must be completed on the proper tax form to determine the exact amount of the refund. There are two ways to file taxes, online or by mail. The taxes can be done by the filer themselves or by a tax preparation service. The cheapest way to file taxes is online, but there is the chance of underestimating or not entering all of the deductions available. It may be best to let a professional handle the filing of taxes because they are aware of all of the new tax laws and they can get the filer the most deductions allowed.

Tax calculator

There are many free calculators that can be found on the internet, these can be great to estimate an anticipated refund. When completing any information in an estimator it is a good idea to be as accurate as possible with the numbers that way the refund amount or amount owed will be as close to accurate as possible. Have a copy of all W-2 forms and receipts available to calculate the correct amount. Many people are not aware that they can deduct all types of expenses that they use for work, like mileage, vehicle use, home use if they work out of their home. That is why it may be best to let a professional calculate ones taxes to be assured that everything form the home, business and personal life is taken into consideration in order to get the largest refund possible.

Category: Tax

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